Some Taiwanese memory chip makers are teetering on the brink of bankruptcy due to big loans taken out to build expensive new DRAM factories. The Taiwan government estimates total debt held by its DRAM makers at around NT$430 billion [B].

The original goal for TMC was to consolidate ailing DRAM makers into one new company, and clear debt that could cause problems in Taiwan's banking sector if it isn't repaid.

But officials and executives stopped promoting the idea of consolidation a month ago and have been talking up the plan to make TMC into a technology-focused company.